Maybe you’ve seen the TV shows where a suspect appears before a judge to find out what it will cost to get out of jail while he waits for a court date.
That money is called bail, and it’s part of the $2 billion a year bail bonds services industry. Becoming a bail bonds company takes hard work, money and patience. Here’s how to start.
Do Your Homework
Not every state allows commercial bail bonds, or bail bonds for profit. For example, California eliminated bail entirely last year.
Other states, including Massachusetts, Maine, Oregon, Illinois, Kentucky, Nebraska, Wisconsin, and Washington, D.C., have imposed limits on commercial bail. Make sure your state allows a bail bonds company.
Registration
This is the first step to take on your way to becoming a bail bonds agent. You’ll need to check with your Secretary of State to register the name of your business and pay any fees required by your state. You can find business plan templates and other business forms .
Licensing a Bail Bonds Company
You must be licensed before you can work as a bail bonds agent. The requirements vary from state to state but, in general, you need to be at least 18 and have a high school diploma or GED. You’ll also need to pass the exam, a 50 to 60-question test. You must score a 70 or better to open a bail bonds company, and the license is good for two years. You’ll also need to pass a background check.
Some states also require you to work with another licensed agent for a period of time before you can apply for your own license. For example, in Louisiana, any prospective agent has to work with a licensed agent for at least three months.
Financial Requirements
You’ll need to purchase a surety bond, a type of insurance to back up your business. The reason for this is pretty straightforward.
The bail bonds business carries some risk. When a defendant appears before a judge, he will typically request bail. Bail is the money he pays to the court to ensure that he will appear for his next court date. Not all defendants can afford to pay the full amount, so they turn to the best bail bonds agency. The agent puts up the money in exchange for a fee, typically 10% of the total.
If the defendant shows up for his next court date, the money is returned to him or to the bail bonds company. If he doesn’t, the bail bonds company is on the hook for the money. That surety bond you bought will cover your losses.
The US Small Business Administration (SBA) estimates 99.7% of all companies with employees are small businesses. And are available to help you start your own business.
Continuing Education
Once you have your license, it’s good for two years. You’ll still need to pay an annual license renewal fee and complete additional continuing education to maintain it. Most states require that bail bondsman complete a set amount of continuing education hours during the licensing period to qualify for license renewal.
Conclusion
Clearly, opening a bail bonds company isn’t something that can be done in a day or two. The licensing alone can take weeks, and financial investment is substantial. But, the business can pay big rewards for people willing to take it on.
For more information about opening your own bail bonds company, check out our
